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Ericsson posts 4% net profit in Q3

Oct 20, 2011 2:41am

Wireless infrastructure giant Ericsson (NASDAQ:ERIC) posted a 4-percent increase in net profit in the third quarter of $574 million. Sales for the quarter rose by 17 percent.

CEO Hans Vestberg said the growth was "driven by a continued strong demand for mobile broadband as well as increased services revenues... Our performance year-to-date reaffirms our indications of a strengthened global market share."

Ericsson's managed services business saw increased sales of 12 percent quarter-over-quarter, with 24 new managed services contracts reported in the second quarter.

"Increased global smart phone penetration, new devices and the introduction of tiered pricing is driving continued mobile data traffic growth," Vestberg said. "Mobile broadband subscriptions are expected to reach close to one billion by year-end and to reach close to five billion by 2016. We believe that the fundamentals for longer-term positive development for the industry remain solid."